Housing in Southern Africa February 2015

Infrastructure & Mixed Use

R10bn Landmark malls deal

O ld Mutual Life Assurance Company South Africa (Old Mutual) and Business Venture Investments represented by Pa- reto have entered into an asset swap transaction involvingmajor shopping precincts, MenlynPark inPretoria and Cavendish Square in Cape Town. The asset swap will mean that Paretowill acquire the 50%of Menlyn ShoppingCentre fromOldMutual and the latter will acquire the 50% share of Cavendish from Pareto, with the net consideration payable in cash. The iconic shopping centres have Old Mutua l and Pareto announce a deal for full ownership of landmarkmalls valued at R10 billion.

been equally owned by Old Mutual and Pareto for five years and there have been developments in both centres, withMenlyn currently under- going a development upgrade. These assets represent approximately R10 billionworth of prime retail property. Peter Levett, Managing Director of Old Mutual Property, whichmanages the properties, said the asset swap was mutually beneficial for both companies and that the decisionwas based on ensuring optimal growth in their respective property portfolios. “We are very pleased with this value-enhancing transaction, which gives us outright ownership of a key retail centre, Cavendish. This will enable us to access additional de- velopment opportunities within our portfolio. Our ability to reinvest the net cash proceeds in new develop-

ments will further boost value in our strong portfolio of retail, office and industrial assets, representing a total of R20 billion,” says Levett. Marius Muller, Chief Executive Officer of Pareto, comments: “We are thrilled that this transaction will see Pareto becoming the outright owner of another regional shopping centre. Menlyn Park Shopping Centre is an ideal fit for Pareto’s portfolio, especially as its current R2 billion redevelopment project reflects Pa- reto’s strategy of adding value to our assets.” “Pareto acquired other key land- mark retail in Gauteng and the Free State,” says Muller. The transaction is subject to Com- petition Authority approval and other conditions associatedwith a transac- tion of this nature. ■

February 2015